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effectively conceded this issue. See Rule 149(b). While
petitioner provided minimal detail about his income from other
activity, we surmise that petitioner performed activities similar
to those performed for the Stewart band. In light of the fact
that no contrary evidence was presented, we sustain respondent’s
determination on this issue.
Employee Business Expenses
We next consider whether petitioner is entitled to Schedule
A deductions for various employee business expenses. Deductions
are a matter of legislative grace, and taxpayers must prove that
they are entitled to those claimed. Rule 142(a); INDOPCO, Inc.
v. Commissioner, 503 U.S. 79, 84 (1992). They must maintain
adequate records to substantiate deduction amounts. Sec. 6001;
Meneguzzo v. Commissioner, 43 T.C. 824, 831-832 (1965).
Section 162(a) permits the deduction of "ordinary and
necessary" expenses paid or incurred during the taxable year in
carrying on any trade or business. Generally, except as provided
by section 274(d), when evidence shows that a taxpayer incurred a
deductible expense, but the exact amount cannot be determined,
the Court may approximate the amount. Cohan v. Commissioner, 39
F.2d 540, 543-544 (2d Cir. 1930). The Court, however, must have
some basis upon which an estimate may be made. Vanicek v.
Commissioner, 85 T.C. 731, 742-743 (1985).
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